Liberty Hill City Council approved another round of water and wastewater rate hikes May 13.
The context
The rate hikes are necessary to fund infrastructure improvements and to pay down debt associated with those ongoing infrastructure projects, Finance Director Josh Armstrong said.
He explained that the roughly 10% rate increases are a "Year 2" step in the city's five-year 2025 Water Master Plan, which found that the city could face water shortages in the next few years if it did not bolster its infrastructure. The first phase of increases was adopted in April 2025.
What you need to know
Armstrong said the average utility bill will increase by $12.20 per month.
Utility rates will increase across the board. Inside the city limits, the monthly minimum charge for a standard residential water meter will increase from $45.36 to $50.12. Outside city limits, it will increase from $56.70 to $62.65.
Monthly residential wastewater rates will also increase from $66.65 to $70.98 within the city limits and from $72.36 to $77.06 outside the city limits.
The new rates go into effect in June and will be reflected on July bills, Armstrong said.
How we got here
Liberty Hill’s current water demand is projected to increase by 12% per year over the next 10 years, then by 16% per year through 2050, when ultimate buildout of the city’s current service area is expected to be completed, according to previous Community Impact reporting.
Liberty Hill currently gets its water from four active groundwater wells pulling from the Trinity Aquifer, as well as from a contract for surface water from Lake Travis, according to the water plan. The water is then treated by the city of Leander before being delivered to Liberty Hill’s distribution system.
Liberty Hill does not own a water treatment facility, but the city is working on piloting a water reuse facility that would purify reclaimed wastewater to drinking water standards for reuse by city water customers.
